I updated the Intel USB 3.0 host controller - there was no improvement.
The set up I have on my laptop is as follows:
1. MiniDisplay Port - Connected to Dell 2007FP @ 1600x1200
2. USB 3.0 - DisplayLink - Connected to Dell 2009W @ 1680x1050
Here is a video that demonstrates the flashing problem that I'm experiencing. (If I play this video that I created on the Displaylink managed monitor, it flashes continuously!)
http://www.youtube.com/watch?v=hLOsUf8-0s0&feature=youtu.be
If I switch the monitor connections - the problem changes. Instead of the Displaylink managed monitor flashing, it will continually crash Desktop Window Manager about once per hour. That's a pretty awful experience as well.